Re:United Airlines bans AI agents from booking flights on be...
by bz_bz_bz on Wednesday November 11, 2026 @08:30PM
(#50461823)
You don't need to know if a decision is perfect to decide if it is sub-optimal. You think that rational inattention is FUD and that all borrowers pay attention to mortgage rates constantly?
You start with the 20% of mortgagees that completely fail to refinance even though it would save them money [1] and then move on the other 17% that wait too long to refinance and then the 52% that do so at the wrong rate by using rules of thumb instead of more sophisticated models. [2]
If you'd like to better understand this "FUD", Matt Levine is a much better write than I am: https://archive.is/WljUV
You start with the 20% of mortgagees that completely fail to refinance even though it would save them money [1] and then move on the other 17% that wait too long to refinance and then the 52% that do so at the wrong rate by using rules of thumb instead of more sophisticated models. [2]
If you'd like to better understand this "FUD", Matt Levine is a much better write than I am: https://archive.is/WljUV
[1] https://www.nber.org/papers/w20401 [2] https://www.econstor.eu/bitstream/10419/96658/1/74522380X.pd...